Dokumen - Tips - 152633980 Accrual Reconciliation Process and Troubleshooting in r12 PDF

© 2009 Oracle Corporation – Proprietary and Confidential
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Understanding Accrual Reconciliation Process and

Troubleshooting in R12
Pramod Sethi
Pitchai Gopalakrishnan

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Agenda
Overview Of Accruals
Setups
Accrual Reconciliation Programs
Reconciliation Data flow
Common Reconciliation Issues
Accrual Diagnostics Script
Demonstration

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Accruals are accumulation of expense that is

recognized before cash is paid.
Accruals are liabilities to pay for goods or services
that have been received but have not been paid or
invoiced.
Examples
Wages payable
Sales tax payable
Rent payable

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Types of Purchase Accruals
Types of Purchase Accruals

Online Accruals
Period end Accruals
Online Accruals Period end Accruals

Inventory and Expense items Only Expense items
Accruals generated while saving the Accruals generated during period end
receipts for uninvoiced receipts
Accruals can be viewed from View Cannot be viewed from View
Accounting form Accounting form
Accruals are knocked off when Accruals are reversed in next period.
invoiced
Accrue On Receipt = Yes Accrue On Receipt = No

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Accrual Accounting Entries
Online Accruals
Transaction Accounting Entries
Receive Accrual Cr
Receiving Inspection Dr
Deliver Receiving Inspection Cr
Inventory Valuation Dr
Invoice Supplier Control Cr
Accrual Dr
Period end Accruals

Transaction Accounting Entries
Receive Accrual Cr (Dr)
Expense Dr (Cr)
Invoice Supplier Control Cr
Expense Dr

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Agenda
Setups
Demonstration

7
Setups
Defining Expense Accrual Options

At Receipt
Period End
Expense A/P accrual account
This account is used to accrue payables liability for expense
items at time of receipt.
This account is used to accrue payables liability for expense
items by receipt period end accrual process.
Navigation
Purchasing responsibility > Setup > Organizations >
Purchasing Options

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Setup Expense AP Accrual Account
select expense_accrual_code,inventory_accrual_code,accrued_code_combination_id
from po_system_parameters_all where ORG_ID=&OU_ID

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Setup Inventory Accrual Account
Inventory A/P accrual account

This account is used to accrue payables liability when
inventory items are received.
Navigation
Inventory responsibility > Organization >Parameters >
Other Accounts
Declare the accruals accounts
Before starting the reconciliation declare the accounts
Navigation
Purchasing responsibility > Accounting > Accrual Write
Off > Select Accrual Accounts

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Setup Inventory Accrual Account
select ap_accrual_account from mtl_parameters where organization_id=&INV_ORG_ID;

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Setup Accrual Accounts
select * from cst_accrual_accounts where operating_unit_id=&OU_ID

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Agenda
Setups
Demonstration

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Below programs are used for online accrual

reconciliation process
Create Accounting – Receiving / Cost Management
Transfer Journal entries to GL
Accrual Reconciliation Load Run
AP and PO Accrual Reconciliation Report
Miscellaneous Accrual Reconciliation Report
Summary Accrual Reconciliation Report
Account Analysis Report

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Create Accounting – Receiving / Cost Management

Transfers the data from receiving/ inventory subledgers to
SLA.
Create journals in SLA .
Transfer and posting journals to GL can also be done.
Transfer Journal Entries to GL
Transfers journals entries to GL
Posting the transferred journals can also be done.

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Purchase Accrual Process
Receive Purchase Receiving Transaction rcv_transactions

Order Processor rcv_receiving_sub_ledger
Create Accounting- xla_distributions_links

Receiving/Cost Mgt xla_ae_headers
xla_ae_links
Transfer to Journal gl_je_headers

Entries to GL gl_je_lines
gl_import_references

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Inventory Accrual Process
Inventory
miscellaneous Cost Manager mtl_transaction_accounts
transactions
Consignment
transactions
Create Accounting-Cost xla_distributions_links
Management xla_ae_headers
xla_ae_links


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Payables Accrual Process
Payables Invoices ap_invoice_distributions_

all
Create Accounting xla_distributions_links

xla_ae_headers
xla_ae_links


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The Load program is used to populate the accrual
reconciliation tables with all the necessary transaction data
needed to perform the reconciliation process.
All the affected Po distributions within the date range will be
deleted first and current/updated values for the transactions
in the date range will be appended to existing data
In upgraded instance Ignores the ‘From Date’ specified and
runs from the start of transaction history
In upgraded instance upgrades the write off transactions
from 11i and loads them into cst_write_offs and
cst_write_off_details table.

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Load Run Data Flow
xla_distributions_links
xla_ae_headers
xla_ae_links
Accrual Reconciliation
Load Run
cst_reconciliation_build
cst_reconciliation_summary
cst_ap_po_reconciliation
cst_misc_reconciliation
CSTACCLB.pls is file associated to Accrual Reconciliation Load run program

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Load Run Log file
Accrual Reconciliation Load Run program log file
CSTACRLR module: Accrual Reconciliation Load Run
+------------------------------------------------------------------------
**Starts**17-DEC-2012 14:57:37
**Ends**17-DEC-2012 14:57:37
+---------------------------------------------------------------------------+
Start of log messages from FND_FILE
+---------------------------------------------------------------------------+
start_accrual_load +
l_stmt_num :5
p_from_date :2012/11/01 00:00:00
p_to_date :2012/11/30 00:00:00
l_operating_unit:228
accrual_load+
p_operating_unit:228
p_from_date := 2012/11/01 00:00:00
p_to_date := 2012/11/30 00:00:00
l_stmt_num:5
l_req_arg:2012/11/01 00:00:00
l_req_running:1
l_stmt_num:10
l_acc_accounts:0
EXCEPTION FND_API.g_exc_error IN accrual_load
l_stmt_num :10
x_msg_count:0
x_msg_data :
accrual_load - l_err_status:E
accrual_load - l_err_count :0
accrual_load - l_err_data :
start_accrual_load-
+---------------------------------------------------------------------------+
End of log messages from FND_FILE
+------------------------------------------------------------------------

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Accrual Reconciliation Reports
AP and PO Accrual Reconciliation Report

Shows the transaction details based on each accrual
account for each PO distribution with the Receiving
transaction amount and invoice transaction amount with a
net balance greater than zero.
Miscellaneous Accrual Reconciliation Report
Shows the transaction details based on each accrual
account which got hit because of Miscellaneous Inventory
transactions and AP NO PO transactions.
Summary Accrual Reconciliation Report
Shows the total balances for each accrual account without
any distribution details and individual transaction amount.

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Agenda
Setups
Demonstration

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Reconciliation Data Flow
Setup Accrual Account
Accrual Load Run
Summary
AP & PO Reconciliation Miscellaneous
Reconciliation Report
Report Reconciliation Report
AP & PO Write Off Miscellaneous Write Off
Write-Off Report

24
Table Information
cst_reconciliation_build
A record is inserted into this table each time Accrual
Reconciliation Load run program is submitted.
To verify whether Accrual load run program is run for the
period this table data has to be checked.
cst_reconciliation_summary
Summary Accrual Reconciliation report picks data from
cst_reconciliation_summary which gets populated during
the load run process.

25
Table Information
cst_ap_po_reconciliaiton
AP and PO Accrual Reconciliation Report picks data
from cst_ap_po_reconciliaiton which gets populated
during the load run process.
cst_misc_reconciliation
Miscellaneous Accrual Reconciliation report picks data
from cst_misc_reconciliation which gets populated during
the load run process.
cst_write_offs
Write off data is stored in cst_write_offs
Write off report picks data from this table.

26
Agenda
Setups
Demonstration

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Data not transferred from sub ledgers to SLA

Data not transferred from SLA to GL
Data corruption like
Negative Ledger id in GL Tables
Data marked as transferred in SLA but not reached GL.
Data marked as not transferred in SLA, but reached GL
Records missing gl sl link id
Accrual account not unique.
Periods are not upgraded in R12 instance which is
migrated from 11i

28
Upgrade Process
The below options are available to upgrade 11i

accrual transactions
SLA Pre-Upgrade,
SLA Post-Upgrade and
Hot Patch.
During the upgrade, existing accounting data from
the subledgers (i.e., Costing, Payables) is upgraded
into the new Oracle Subledger Accounting (SLA)
data model. For more information refer note
Note 604893.1 -R12.0 and R12.1: FAQ for the SLA
Upgrade: SLA Pre-Upgrade, Post-Upgrade and Hot Patch

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Accrual Balance before Upgrade
In 11i
Transaction Transaction Transaction Accrual
Type Date Qty Balance ($)
Receive 01-DEC-2011 10 -100
Invoice 01-JAN-2012 10 100
Net accrual balance = 0

Pre upgrade done from 01-JAN-2012 to 31-OCT-2012

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Periods upgraded before R12 Upgrade
JAN 2005
……
JUL 2007
…….
DEC 2009
…….
AUG 2011
……..
JAN 2012 Data in this date range is upgraded
……. using SLA Pre-Upgrade program
OCT 2012

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Accrual Balance after Pre-upgrade
In R12
Transaction Transaction XLA Accrual GL
Type Date Balance ($) Accrual
Balance ($)
Receive 01-DEC-2011 0 -100
Invoice 01-JAN-2012 100 100
Net accrual balance in XLA = 0+100= 100

Net accrual balance in GL = - 100 +100 = 0

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Periods upgraded in R12
Periods upgraded after R12 upgrade
JAN 2005
……
JUL 2007
…….
DEC 2009
JAN 2010
Data in this date range is upgraded
……… using SLA Post-Upgrade program
DEC 2011
JAN 2012
Data in this date range is upgraded
……. using SLA Pre-Upgrade program
OCT 2012

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Accrual Balance after Post-upgrade
In R12
Transaction Transaction XLA Accrual GL
Type Date Balance ($) Accrual
Balance ($)
Receive 01-DEC-2011 -100 -100
Invoice 01-JAN-2012 100 100
Net accrual balance in XLA = -100+100 = 0

Net accrual balance in GL = - 100 +100 = 0

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Recommendations
If all periods are not upgraded(partial upgrade) then

as on date accruals balances in XLA and GL will
never match.
If some accruals transactions in the upgraded
periods have data missing in XLA tables then follow
below note
Note 1472099.1 - Missing Accounting Entries In SLA For
Transactions In Upgraded Periods

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Recommendations
Use different accruals account for period end and

online accruals.
Ensure accrual account is not same as the below
accounts
Charge account
Receiving Inspection account
Budget account
Variance account
Supplier liability account
Do not use Uninvoiced Receipt Report to reconcile
online accruals.

36
Recommendations
Upgrade the CSTACCLB.pls file version to the

highest version.
Product Ver. Latest file Ver. Patch
R12.0.X 120.23.12000000.47 12951241:R12.BOM.A
R12.1.X 120.27.12010000.39 13630026:R12.BOM.C
Run the Accrual Load program for incremental
periods.
Run the Accrual Load program for overlapping
periods only if back dated transactions are done.

37
Agenda
Setups
Accrual Data flow
Demonstration

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Accrual Diagnostics script
The Accrual Diagnostics script is designed to be run when there

is a reconciliation issue between subledger and GL.
The script is designed to spool full table contents to a html file.
The script is being created to allow customers to run a single
script to retrieve all data from various tables instead of having to
run individual scripts - spooling to multiple files.
The script is applicable only for R12 customers.
The script is applicable only for discrete manufacturing and not
process manufacturing customers.
This script is not applicable for customers using Period Average
Costing.

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Script Input Parameters
It requires below as inputs :

Accrual Code Combination ID
Enter the Accrual Code Combination ID for the problematic Accrual
Account
Start Date
Enter the Start Date of Reconciliation in Format: DD-MON-YYYY
End Date
Enter the End Date of Reconciliation in Format: DD-MON-YYYY
Ledger ID
Enter the Ledger ID for the reconciliation
Operating Unit ID
Enter the Operating Unit ID for the reconciliation

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Reconciliation Steps
What is accrual balance in GL for Cost Management and

Payables sources ?
What is accrual balance in SLA for Cost Management and
Payables sources ?
Whether GL and SLA balances are matching ?
If not matching check for known causes
In upgraded instance
Is the respective periods upgraded ?
Is there records missing gl sl link id ?
Is there is any unposted journals ?
Any data with Negative Ledger_id in GL tables. ?
Any data marked as transferred in SLA but not reached GL. ?
Any data marked as not transferred in SLA, but reached GL ?

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KM Notes
1478292.1 -R12 Accrual Reconciliation Diagnostics And Troubleshooting Guide

1107953.1 -R12 Accrual Balance Mismatch Between Accrual Reconciliation
Report and GL - Troubleshooting
1117353.1 - R12: Discrepancies with Accrual Reconciliation Report -
Troubleshooting
866733.1 -How To Diagnose Inventory Accruals And Accrual Write Off Issues
1126025.1 -R12: Discrepancies With Accrual Reconciliation Report For
Consigned Items - Troubleshooting
883557.1 -R12: How To Avoid and Fix Corruption in Data Transfer from SLA -
Negative Ledger_ID, Not Reached GL, Duplicate in GL
604893.1 -R12.0 and R12.1: FAQ for the SLA Upgrade: SLA Pre-Upgrade,
Post-Upgrade, and Hot Patch
1472099.1 -Missing Accounting Entries In SLA For Transactions In Upgraded
Periods
© 2010 Oracle Corporation – Proprietary and Confidential 42

Agenda
Setups
Accrual Data flow
Demonstration

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D E M O N S T R A T I O N

44
45
THANK YOU

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© 2009 Oracle Corporation – Proprietary and Confidential

Understanding Accrual Reconciliation Process and

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Accruals are accumulation of expense that is

© 2010 Oracle Corporation – Proprietary and Confidential

Types of Purchase Accruals

Online Accruals Period end Accruals

© 2010 Oracle Corporation – Proprietary and Confidential

Period end Accruals

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Defining Expense Accrual Options

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Inventory A/P accrual account

© 2010 Oracle Corporation – Proprietary and Confidential

select ap_accrual_account from mtl_parameters where organization_id=&INV_ORG_ID;

© 2010 Oracle Corporation – Proprietary and Confidential

select * from cst_accrual_accounts where operating_unit_id=&OU_ID

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Below programs are used for online accrual

© 2010 Oracle Corporation – Proprietary and Confidential

Create Accounting – Receiving / Cost Management

© 2010 Oracle Corporation – Proprietary and Confidential

Receive Purchase Receiving Transaction rcv_transactions

Create Accounting- xla_distributions_links

Transfer to Journal gl_je_headers

© 2010 Oracle Corporation – Proprietary and Confidential

Transfer to Journal gl_je_headers

© 2010 Oracle Corporation – Proprietary and Confidential

Payables Invoices ap_invoice_distributions_

Create Accounting xla_distributions_links

Transfer to Journal gl_je_headers

© 2010 Oracle Corporation – Proprietary and Confidential

Accrual Reconciliation Load Run

© 2010 Oracle Corporation – Proprietary and Confidential

CSTACCLB.pls is file associated to Accrual Reconciliation Load run program

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

AP and PO Accrual Reconciliation Report

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Setup Accrual Account

Accrual Load Run

AP & PO Write Off Miscellaneous Write Off

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Data not transferred from sub ledgers to SLA

© 2010 Oracle Corporation – Proprietary and Confidential

The below options are available to upgrade 11i

© 2010 Oracle Corporation – Proprietary and Confidential

Net accrual balance = 0

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Net accrual balance in XLA = 0+100= 100

© 2010 Oracle Corporation – Proprietary and Confidential

© 2010 Oracle Corporation – Proprietary and Confidential

Net accrual balance in XLA = -100+100 = 0